After several years of powerful stock market gains driven by the artificial intelligence revolution, some of the world’s largest technology corporations are now experiencing a sharp correction. Investors who previously rewarded aggressive AI expansion strategies are beginning to scrutinize capital expenditure, profitability timelines, and intensifying competitive threats.
Since the start of 2026, several major US technology firms have collectively lost hundreds of billions of dollars in market value. The decline reflects a shift in investor sentiment as companies dramatically increase spending on AI infrastructure, data centres, and advanced computing systems while facing mounting competition from rival AI platforms.
Shares of Microsoft have fallen about 17% year-to-date. The drop has wiped roughly $613 billion from its market capitalization, reducing it to approximately $2.98 trillion as of Friday.
Investor concerns are centered on potential risks to Microsoft’s AI-driven revenue streams and increasing competition from Google’s latest Gemini model and Anthropic’s Claude Cowork AI agent. These developments have weighed on overall market sentiment surrounding the stock.
Microsoft has been one of the biggest corporate beneficiaries of the AI wave, largely due to its deep integration of AI across enterprise products and cloud services. However, as AI investments grow larger, the market is demanding clearer evidence of sustainable returns.
Amazon has also experienced significant pressure. Its shares are down approximately 13.85% so far this year, erasing about $343 billion in market value. The company is now valued at roughly $2.13 trillion.
Earlier this month, Amazon announced that it expects capital spending to increase by more than 50% this year. The substantial jump in expenditure—primarily aimed at AI infrastructure and cloud expansion—has prompted investors to question how quickly the company can generate meaningful returns from these investments.
Nvidia, a key supplier of AI chips and GPUs, has seen its market value decline by about $89.67 billion since the beginning of 2026, bringing its valuation to approximately $4.44 trillion. Although Nvidia remains a dominant force in AI hardware, volatility reflects broader uncertainty in the technology sector.
Apple has lost around $256.44 billion in market capitalization and is currently valued at roughly $3.76 trillion. While Apple’s AI strategy focuses on ecosystem integration and consumer devices, investor caution reflects concerns about global demand and innovation pace.
Alphabet Inc. has experienced a market value decline of approximately $87.96 billion, bringing its valuation to around $3.7 trillion. Competition in AI search, generative AI tools, and enterprise applications continues to reshape the competitive landscape.
For several years, markets rewarded technology firms for bold AI strategies and long-term growth ambitions. High valuations were supported by expectations that AI would unlock transformative productivity gains and new revenue streams.
However, the mood in 2026 appears more cautious. Investors are now focusing on:
Near-term earnings performance
Return on AI-related capital expenditure
Competitive positioning
Profit margins under heavy infrastructure spending
Valuations that once expanded rapidly during the AI boom are now being tested under tighter financial scrutiny.
Not all global giants have experienced losses during this period.
Taiwan Semiconductor Manufacturing Company (TSMC) has added approximately $293.89 billion in market value, lifting its valuation to around $1.58 trillion. As a crucial supplier of advanced chips used in AI systems, TSMC continues to benefit from strong semiconductor demand.
Samsung Electronics has gained about $272.88 billion, pushing its valuation to approximately $817 billion. Its diversified portfolio across memory chips and consumer electronics has supported resilience.
Walmart has seen its market capitalization rise by roughly $179.17 billion, bringing it to about $1.07 trillion. Defensive retail positioning and stable earnings have attracted investors amid tech volatility.
In the wider US market, the S&P 500 closed only slightly higher on Friday, supported by cooling inflation data. However, the Nasdaq Composite ended lower as major technology and communications services stocks declined due to AI-related disruption concerns.
For the week, the S&P 500, the Nasdaq, and the Dow Jones Industrial Average all recorded declines.
Technology stocks have been particularly volatile, with sharp upward and downward swings reflecting uncertainty around:
AI competition
High capital investment
Profit margin pressures
Monetization timelines
US stock markets were closed for trading on February 16, 2026.
The recent decline in global technology valuations signals a turning point in the AI investment cycle. After years of optimism and rapid expansion, markets are shifting from growth-at-all-costs enthusiasm to disciplined evaluation of profitability and capital efficiency.
While artificial intelligence remains a transformative force across industries, investors are demanding clearer financial outcomes from massive infrastructure spending. Companies that can demonstrate measurable returns, operational efficiency, and competitive resilience are likely to regain confidence.
The AI boom is not over—but it has entered a more mature and scrutinized phase.